Generative AI is the Napster-level wrecking ball smashing through the music industry’s creative and legal frameworks, and it’s not pulling punches. This tech spits out new tracks by mining mountains of existing music data, but the industry’s patchwork copyright laws are gasping for air, trying to catch up. The stakes? Massive. AI slashes production costs and cranks out songs faster than any human could dream, threatening traditional revenue streams and licensing deals that labels and artists have long relied on. Labels are suing AI companies, claiming their IP was used without a dime paid, while streaming platforms see both opportunity and existential risk—more content means more engagement, but local AI models could kill streaming itself. Artists who get savvy with AI stand to unlock fresh income streams and creative doors, but those dragging their feet risk becoming relics. The market is booming—AI music is projected to boost industry revenue by 17.2% in 2025 and could grow from $3.9 billion to nearly $39 billion by 2033—but a Goldmedia study warns musicians might see their share shrink by up to 27% by 2028 if compensation systems don’t evolve. Meanwhile, AI-generated bands like The Velvet Sundown rack up millions of streams without a single human behind the scenes, blurring lines between art and algorithm. The industry faces a brutal choice: update legal frameworks and embrace AI’s creative potential or cling to outdated models and watch the money evaporate. The real question is, in this high-stakes game of innovation versus regulation, who’s going to blink first—and who’s ready to write the next chart-topping algorithm?
Source: MarketScreener
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